What did the Tribunal hold?

The Tribunal, while acknowledging the assessee's negligence, restored the appeal to the CIT(A) for de novo adjudication to uphold the principle of natural justice. The assessee is directed to substantiate its case, failing which the CIT(A) can proceed with the existing material.

The assessee's appeal before the CIT(A) was dismissed due to non-representation. The Assessing Officer had disallowed commission expenses of Rs. 126.23 Lacs. The assessee is now appealing this dismissal.

What were the issues?

Whether the assessee should be granted another opportunity to present its case before the CIT(A) despite prior non-representation, and the validity of the disallowance of commission expenses.

Annamalayar Associate, Madurai vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018- 19 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 16-01-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 10-03-2021. In the assessment order, Ld. AO disallowed commissions expenses for Rs.126.23 Lacs. The Ld. CIT(A) dismissed the appeal since the assessee did not make any representation therein. Aggrieved, the assessee is in further appeal before us. At the time of hearing, none appeared for assessee and Ld. Sr. DR pleaded for dismissal of the appeal.

Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Accordingly, the appeal is restored back to Ld. CIT(A) for de novo adjudication after affording opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith failing which Ld. CIT(A) shall be at liberty to proceed with adjudication of appeal on the basis of material on record.

The appeal stand allowed for statistical purposes. Order pronounced on 1st May, 2024 Sd/- Sd/- (MANU KUMAR GIRI) (MANOJ KUMAR AGGARWAL) �ाियक सद4 / JUDICIAL MEMBER लेखा सद4 / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated : 01-05-2024 DS आदेशकीRितिलिपअ/ेिषत/Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. � थ�/Respondent 3. आयकरआयु=/CIT 4. िवभागीय�ितिनिध/DR 5. गाडBफाईल/GF

ANNAMALAYAR ASSOCIATE,MADURAI vs. ITO, JCIT, NON CORP. -1, MADURAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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